Accountancy leaders’ 2024 sector forecast

Andrew Leck, Chief Executive, MSI Global Alliance:

Firms continue to look at new ways to address their resourcing challenges and this will continue in 2024. The solutions we are seeing are a mix of adopting new technology and looking at alternative sources of staff resources.

Several MSI member firms are working with outsourcing partners, on both a long-term and short-term basis. There are an increasing range of services being provided by outsourcing firms, including accounting, audit and tax and we expect this to continue to grow in 2024. The outsourcing firms within MSI work in partnership with the member firms to provide a tailored approach and alleviate concerns about providing core services to clients from a different jurisdiction.

AI remains a constant discussion topic, with firms moving away from just watching what is happening with AI, to using it in their day-to-day delivery to clients.  The fast pace of technological change means firms are using internal and external technology expertise to help them develop their technology roadmap.

ESG considerations continue to develop, with an increasing demand for expertise and knowledge in firms. Several firms are investing heavily in capability that can be used to broaden their own service lines and this is accelerating more so in Europe, due to the forthcoming EU regulations.

Anton Colella, CEO Moore Global:

The accountancy industry is facing several challenges and risks. The biggest by far is how we ensure the younger generations see the industry as relevant and as an inspiring career path to follow. We need to look up as leaders, prioritise the growth of our people as much as the growth of our bottom line, and sell the amazing opportunities that a career in this industry can offer.

 The growth of technology such as AI is something we should all embrace, but we must ensure that the human aspect is not lost as we move forward. Our clients, and our people, will not stay with organisations that do not feel authentic. Technology can free up our time and allow us to concentrate on developing our relationships with clients, spending more time understanding them and their businesses. We must ensure that these skills are part of how we train and develop all our future leaders.

Chris Borneman, CEO MGI Worldwide:

I believe the accountancy profession is in the foothills of massive change, having remained remarkably unchanged over the previous 20 years or so.  There are a number of factors at play here including difficulty in some regions finding sufficient numbers of good qualified staff; different expectations from the next generation which threatens the traditional partner model; the growing importance of ESG; regulatory changes; and the continuing M&A activity driven by private equity and a shortfall in succession planning.  But I believe we are still grappling to understand “the big one” and what it will mean:  Artificial Intelligence.  And it is moving so fast that even if one were to understand it today, in a couple of weeks one would be out of date. 

I believe AI should be viewed as both a threat for those slow to adapt, and an opportunity for those fleet of foot.  And at MGI Worldwide, we are working hard with our firms to understand what this means both for the profession and for individual firms and how to best benefit from it – as we are stronger together when working together.  And it is proving to be an exciting journey – not least in how we can address some of our human resource shortfall, and how our current business models and service offers might need to adapt.

Marco Donzelli, CEO, HLB Global:

In 2024, the accountancy profession is poised for transformative shifts driven by dynamic trends and evolving client expectations. Cybersecurity will take centre stage, with the escalating sophistication of cyber threats demanding fundamental measures for protecting financial data. Environmental, social, and governance (ESG) considerations will become even more important, requiring integration into core operations to meet client expectations and position firms as agents of positive change. Diversification beyond traditional services will be essential, as clients seek comprehensive consulting solutions, prompting a shift in training methodologies.

The increased use of technology, including artificial intelligence and data analytics, requires proactive upskilling programmes to foster adaptability. Success in 2024 hinges on a forward-thinking approach, strategic investments, and a commitment to staying at the forefront of industry evolution for a more resilient, sustainable, and technologically advanced future.

Mark Koziel, President and CEO, Allinial Global:

Accounting practices evolve as innovative technologies emerge and old ways become obsolete. Firm leaders feel the impact of technology and automated accounting processes as noted above. The profession will continue to see high growth in 2024.

Globally, expectations of a recession may reduce—but not eliminate—the amount of advisory work for member firms. Advisory services may shift toward corporate finance and client accounting advisory as companies move away from internal accounting support and outsource to firms that can provide added value.

We are already seeing larger client opportunities for member firms and expect those to increase as more global companies seek a multi-country solution to their accounting needs. Allinial Global is laser focused on helping member firms offer those services by providing the right connection points to handle client needs with timely and exceptional service.

As more data is shared electronically, hackers are stepping up their game. Accounting firms must protect themselves from cyber threats and other data security issues, offering employees appropriate cybersecurity training.

Likewise, the demand for data specialists will skyrocket in the changing landscape. To respond to increasingly complex and specialised business needs, accountants need diverse skill sets, including advanced analytics and forecasting techniques. CPAs must be well versed in business concepts and proficient with technology and data analytics to provide valuable insight to clients.

Steve Heathcote, CEO PrimeGlobal, The Association of Accounting and Advisory Firms:

ESG opportunities for firms will accelerate as many businesses in the European Union, and in the US, realise the full impact of the Corporate Sustainability Reporting Directive (CSRD) and the wide ranging California climate disclosure law. There will be a consequential impact in other markets like the UK.  Firms will need to build ESG capability to support businesses. New ESG assurance products will emerge, and our firms are already collaborating and developing common approaches to meet this increasing demand.  PrimeGlobal is developing support for practitioners in the ESG space to ensure that firms can collaborate and quickly build capacity.

Pressures across the accountancy profession will intensify with the continuing war for talent, new regulators expecting more from auditors, and private equity fuelling further firm consolidation.   Firms will need to develop clear strategies and ensure they can execute them effectively; this includes articulating what makes them different to others in the market - vital to attract the next generation of partners, or investors.  PrimeGlobal is developing tools to help firm leaders make these strategic decisions, set targets, and monitor progress.  We are also introducing leadership training across our member firms to ensure the next generation are equipped to lead this transition.

2024 will continue to be a period of uncertainty for the profession as proposed governance, accounting and audit reform is delayed as major elections take place in the US and the UK.  This will continue to make it very challenging for firms to advise and support businesses. With professionals already at peak capacity, Governments need to step back and consider what is most important – prioritising reporting and auditing regulation accordingly.  I believe this should mean prioritising ESG changes and allowing firms space to focus limited resources on this existential transition.

Tim Wilson, Chief Executive, Nexia International:

There will be further consolidation within the profession as firms struggle with the need for significant investment in technology, retiring partners and challenges in hiring staff. PE will continue to play a big part in the restructuring of the profession - this needs to be considered more by regulators as the traditional partnership model is further eroded. There will be further audit failures and the regulators need to be balanced in dealing with the implications of this, without undermining a diverse audit market particularly in the PIE sector.

There is a dramatic shift to adopt AI applications, especially after the release of ChatGPT and further models. Many of our members have trialled numerous applications over the last year. We would expect a surge in start-ups and existing firms reaching out to our members and other networks with new offerings. As with all “hype-cycles”, we expect this to eventually tail off and a handful of tried and tested vendors/applications to continue to be in use. We envisage early adopters would benefit from first mover advantage and reap long term gains from their investments. The AI landscape is changing at a rapid pace and the accounting industry needs to be nimble and quickly respond to the changing times.

Furthermore, salaries in the profession will continue to rise to try to attract the best talent. Outsourcing will keep increasing as the number of auditors in many countries continues to decrease and the war for talent continues. Automation of menial tasks will increase and accountants with strong digital skills will be even more in demand. More accounting firms need to work on reskilling their current staff with the future skills needed in the next 5-10 years, rather than always hiring externally. Fee income from advisory services will continue to grow, particularly around ESG, data analytics and cyber security.